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Technology Stocks : Osicom(FIBR) -- Ignore unavailable to you. Want to Upgrade?

To: Scott Ozer who wrote (4652)	1/23/1998 9:03:00 PM
From: Afaq Sarwar	Read Replies (2) \| Respond to of 10479

Scott, If the Cisco buyout deal happens at, lets say $30 a share, the stock will jump in a matter second to that price as soon as the deal is announced. The shorts will not have any chance to cover. Now the question is that what happens to their short positions. Do they have to cover at the buyout price or can they maintain their short position by converting their position into a short position of the stock of the buying company, assuming that it is a stock swap deal. What can happen if it is cash deal. I saw this happen before, when for example Verifone (VFI) was bought out by HP (HWP). The second news hit the wires, the stock jump 17 points instantaneously. I am sure shorts did not get a chance cover at all in that case. I believe there were quite a few of them. Based on some of the indirect indications that are public information like Volpe involvement, The Forrester Report, etc., buyout by Cisco, or for that matter by some one else, has a high degree of probability. Afaq Sarwar